BANGKOK (AP) — Shares were mixed in Asia on Wednesday after U.S. stocks rose to records despite President-elect Donald Trump’s latest talk about tariffs, which caused only ripples on Wall Street.
Tokyo’s Nikkei index fell nearly 1%, to 38,081.10 as the Japanese yen surged in value against the U.S. dollar. The dollar fell to 152.31 yen from 153.08 yen. It had traded above 155 yen recently, but uncertainty over the future course of U.S. trade policy has led investors to buy yen as a safe haven, analysts said.
Sharp tariff hikes that Trump said he would impose on imports of goods from Canada, Mexico and China could roil the global economy if they take effect. His comments Monday provoked vehement responses from all three major U.S. trading partners.
“Investors, already jittery, are keenly aware of the ripple effects such protracted disputes could have, particularly on the Chinese and European economies that are bracing for Trump’s tariff onslaught,” Stephen Innes of SPI Asset Management said in a commentary.
South Korea’s Kospi dropped 0.6% to 2,505.49 as Samsung Electronics lost 3.3% after the company announced a shift in its top management.
The company said the reshuffle, which included appointing Young Hyun Jun, a Samsung vice chairman who heads its Device Solutions division, to be CEO was intended to strengthen Samsung’s competitiveness, focusing on computer chips.
Chinese markets advanced, with Hong Kong’s Hang Seng gaining 0.5% to 19,259.77, while the Shanghai Composite index added 0.7% to 3,283.55. A 10% drop in industrial profits
Australia’s S&P/ASX gained 0.5%, to 8,400.10, while India’s Sensex edged 0.1% lower. Taiwan’s Taiex sank 1.4% and the SET in Bangkok shed 0.6%.
On Wall Street, investors appeared to shrug off the tough talk on trade.
The S&P 500 climbed 0.6% on Tuesday to 6,021.63 to top the all-time high it set a couple weeks ago. The Dow Jones Industrial Average added 0.3%, to 44,860.31, besting its own record set the day before. The Nasdaq composite gained 0.6% as Microsoft and Big Tech led the way, closing at 19,174.30.
Trump has often praised the use of tariffs, but investors are weighing whether his latest threat is an overture for negotiations or will actually become policy, with painful ramifications for markets and the global economy.
Unless the United States can prepare alternatives for the autos, energy products and other goods that come from Mexico, Canada and China, such tariffs would raise the price of imported items all at once and make households poorer, according to Carl Weinberg and Rubeela Farooqi, economists at High Frequency Economics.